Question 1

Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments.

Accepted Answer

The answer of Separation of duties in a voucher system...

Question 2

Which of the following is an element in a voucher system?

Accepted Answer

A)  General journal 
B)  Sales journal 
C)  Paid voucher file 
D)  Stock Register. 
A)  General journal 
B)  Sales journal 
C)  Paid voucher file 
D)  Stock Register.

Question 3

Which situation would NOT result in a separation of duties?

Accepted Answer

A)  The person who approves purchases does not make the payments. 
B)  The person who makes journal entries is the same as the person who signs and mails checks. 
C)  The person who makes purchases is different from the one who approves the purchase. 
D)  The person who distributes paychecks does not make journal entries. 
A)  The person who approves purchases does not make the payments. 
B)  The person who makes journal entries is the same as the person who signs and mails checks. 
C)  The person who makes purchases is different from the one who approves the purchase. 
D)  The person who distributes paychecks does not make journal entries.

Question 4

Given the following accounts:
-Prepared voucher #424 in the amount of $6,300 in reply to the payroll department's request for payment of last week's wages.
Debit ________ Credit ________

Accepted Answer

A) Cash in bank 
B) Petty cash 
C) Supplies 
D) Equipment 
E) Notes payable
F)Vouchers payable
G)FICA payable
H)Wages payable
I)Purchases
J)Purchase discounts
K)Discounts lost
L)Repairs expense
M)Interest expense
N)Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
The company uses the periodic inventory method. 
A) Cash in bank 
B) Petty cash 
C) Supplies 
D) Equipment 
E) Notes payable
F)Vouchers payable
G)FICA payable
H)Wages payable
I)Purchases
J)Purchase discounts
K)Discounts lost
L)Repairs expense
M)Interest expense
N)Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
The company uses the periodic inventory method.

Question 5

If a purchase return or allowance occurs after the posting of the original voucher, the original voucher is cancelled.

Accepted Answer

A) True 
 B)False

Question 6

A company uses the gross method of recording purchases. An invoice was paid after the discount date. The full amount of the invoice would be recorded in the:

Accepted Answer

A)  check register. 
B)  voucher register. 
C)  general journal. 
D)  A and B are correct. 
A)  check register. 
B)  voucher register. 
C)  general journal. 
D)  A and B are correct.

Question 7

Using the gross method, record the payment of the following transaction in time to take the discount. Clip Company bought $15,000 of merchandise, terms 1/15, n/45. The company uses the voucher system and the periodic inventory method.

Accepted Answer

A)  Debit Cash $15,000; credit Vouchers Payable $15,000. 
B)  Debit Vouchers Payable $15,000; credit Cash $14,850; credit Purchases Discount $150. 
C)  Debit Vouchers Payable $14,850; credit Cash $14,850. 
D)  Debit Vouchers Payable $15,000; credit Cash $15,000. 
A)  Debit Cash $15,000; credit Vouchers Payable $15,000. 
B)  Debit Vouchers Payable $15,000; credit Cash $14,850; credit Purchases Discount $150. 
C)  Debit Vouchers Payable $14,850; credit Cash $14,850. 
D)  Debit Vouchers Payable $15,000; credit Cash $15,000.

Question 8

Each entry in a voucher register includes a:

Accepted Answer

A)  debit to Cash. 
B)  credit to Vouchers Payable. 
C)  credit to Purchases. 
D)  debit to Vouchers Payable. 
A)  debit to Cash. 
B)  credit to Vouchers Payable. 
C)  credit to Purchases. 
D)  debit to Vouchers Payable.

Question 9

A schedule of vouchers payable is prepared from the unpaid voucher file.

Accepted Answer

A) True 
 B)False

Question 10

Any change in an already recorded voucher dictates the ________ of that voucher.

Accepted Answer

The answer of Any change in an already recorded voucher...

Question 11

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 12

The entry to record payment of a voucher for an invoice after the discount period under the gross method and the periodic method will include:

Accepted Answer

A)  a debit to Vouchers Payable. 
B)  a credit to Purchase Discounts. 
C)  a debit to Discounts Lost. 
D)  a credit to Vouchers Payable. 
A)  a debit to Vouchers Payable. 
B)  a credit to Purchase Discounts. 
C)  a debit to Discounts Lost. 
D)  a credit to Vouchers Payable.

Question 13

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 14

The company uses the periodic inventory system and the voucher system. If the net method is applied, the purchase of $8,000 of merchandise with terms 4/15, n/60 is recorded by:

Accepted Answer

A)  debit Cash $8,000; credit Accounts Payable $8,000. 
B)  debit Accounts Payable $8,000; credit Purchases $8,000. 
C)  debit Purchases $7,680; credit Accounts Payable $7,680. 
D)  debit Purchases $7,680; credit Vouchers Payable $7,680. 
A)  debit Cash $8,000; credit Accounts Payable $8,000. 
B)  debit Accounts Payable $8,000; credit Purchases $8,000. 
C)  debit Purchases $7,680; credit Accounts Payable $7,680. 
D)  debit Purchases $7,680; credit Vouchers Payable $7,680.

Question 15

The entry to record payment of a voucher, for an invoice after the discount period, under the net method and the periodic inventory system will include:

Accepted Answer

A)  a debit to Purchase Discounts. 
B)  a credit to Purchase Discounts. 
C)  a debit to Discounts Lost. 
D)  None of these is correct. 
A)  a debit to Purchase Discounts. 
B)  a credit to Purchase Discounts. 
C)  a debit to Discounts Lost. 
D)  None of these is correct.

Question 16

Items are listed in the voucher register in the order liabilities are paid.

Accepted Answer

A) True 
 B)False

Question 17

Given the following accounts:
-Paid voucher #422, payment was within the discount period.
Debit ________ Credit ________ & ________

Accepted Answer

A) Cash in bank 
B) Petty cash 
C) Supplies 
D) Equipment 
E) Notes payable
F)Vouchers payable
G)FICA payable
H)Wages payable
I)Purchases
J)Purchase discounts
K)Discounts lost
L)Repairs expense
M)Interest expense
N)Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
The company uses the periodic inventory method. 
A) Cash in bank 
B) Petty cash 
C) Supplies 
D) Equipment 
E) Notes payable
F)Vouchers payable
G)FICA payable
H)Wages payable
I)Purchases
J)Purchase discounts
K)Discounts lost
L)Repairs expense
M)Interest expense
N)Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
The company uses the periodic inventory method.

Question 18

Ebony Corporation uses a voucher system and completed the following transactions:
Dec. 31 Prepared voucher #301 to replenish the petty cash fund based on the following receipts:
supplies $52, postage $33, and cash over $5.
31 Issued check #1003 in payment of voucher #301.
Required: Prepare general journal entries to record the above transactions. Omit explanations.

Accepted Answer

The answer of Ebony Corporation uses a voucher system and...

Question 19

Using the voucher system when paying an invoice outside the discount period, assuming the gross method, the entry would be to debit Vouchers Payable, credit Sales Discounts, and credit Cash.

Accepted Answer

A) True 
 B)False

Question 20

Booker Company purchased $8,000 of merchandise with terms of 2/10, n/60 and paid the invoice within the discount period. The company uses the periodic inventory method and the voucher system. If Booker's uses the net method of recording merchandise purchases, the $160 purchases discount is:

Accepted Answer

A)  recorded in the voucher register. 
B)  recorded in the check register. 
C)  recorded in the general journal. 
D)  not recorded unless the discount is lost after the discount date. 
A)  recorded in the voucher register. 
B)  recorded in the check register. 
C)  recorded in the general journal. 
D)  not recorded unless the discount is lost after the discount date.

Exam 23: The Voucher System

Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments.

Which of the following is an element in a voucher system?

Which situation would NOT result in a separation of duties?

Given the following accounts: -Prepared voucher #424 in the amount of $6,300 in reply to the payroll department's request for payment of last week's wages. Debit ________ Credit ________

If a purchase return or allowance occurs after the posting of the original voucher, the original voucher is cancelled.

A company uses the gross method of recording purchases. An invoice was paid after the discount date. The full amount of the invoice would be recorded in the:

Using the gross method, record the payment of the following transaction in time to take the discount. Clip Company bought $15,000 of merchandise, terms 1/15, n/45. The company uses the voucher system and the periodic inventory method.

Each entry in a voucher register includes a:

A schedule of vouchers payable is prepared from the unpaid voucher file.

Any change in an already recorded voucher dictates the ________ of that voucher.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

The entry to record payment of a voucher for an invoice after the discount period under the gross method and the periodic method will include:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

The company uses the periodic inventory system and the voucher system. If the net method is applied, the purchase of $8,000 of merchandise with terms 4/15, n/60 is recorded by:

The entry to record payment of a voucher, for an invoice after the discount period, under the net method and the periodic inventory system will include:

Items are listed in the voucher register in the order liabilities are paid.

Given the following accounts: -Paid voucher #422, payment was within the discount period. Debit ________ Credit ________ & ________

Using the voucher system when paying an invoice outside the discount period, assuming the gross method, the entry would be to debit Vouchers Payable, credit Sales Discounts, and credit Cash.

Booker Company purchased $8,000 of merchandise with terms of 2/10, n/60 and paid the invoice within the discount period. The company uses the periodic inventory method and the voucher system. If Booker's uses the net method of recording merchandise purchases, the $160 purchases discount is:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

Departmental Accounting

Manufacturing Accounting

Filters

Given the following accounts: -Prepared voucher #424 in the amount of $6,300 in reply to the payroll department's request for payment of last week's wages. Debit Credit

Given the following accounts: -Paid voucher #422, payment was within the discount period. Debit Credit &